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Evergreen Bill

A4338 Schimminger No Same as General Obligations Law
TITLE….Permits automatic renewal of contracts for electronic and life safety alarm services

State of New York

4338

2011-2012 Regular Sessions

IN ASSEMBLY

February 3, 2011

Introduced by M. of A. SCHIMMINGER — read once and referred to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to automatic renewal of contracts for electronic and life safety alarm services

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section 5-903 of the general obligations law is amended by adding a new subdivision 2-a to read as follows:

2-a. Payment by the person receiving the service of an invoice on a contract for electronic and life safety alarm services after expiration of the term of the contract shall be considered acknowledgment by the person receiving the service that the term of the contract has been extended or renewed and such payment shall fulfill the notice requirements of this section, provided that such invoice clearly indicates that payment constitutes an extension or renewal of such contract and provides the terms of such extension or renewal.

§ 2. This act shall take effect on the ninetieth day after it shall have become a law.

LBD08745-01-1

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)

BILL NUMBER: A4338

SPONSOR: Schimminger

TITLE OF BILL: An act to amend the general obligations law, in relation to automatic renewal of contracts for electronic and life safety alarm services

PURPOSE OF THE BILL: To amend the requirement that persons be given

notice by certified mail of the extension of contracts for life safety and electronic alarm services where such person has received notice of renewal and paid an invoice that clearly indicates that such payment is for a contract extension and renewal.

SUMMARY OF SPECIFIC PROVISIONS: Adds a new section 5-903 to the General Obligations law.

JUSTIFICATION: Under current law, notice of the automatic extension or renewal of a electronic and life safety alarm service. must be given by certified mail. This is bath costly for the alarm company and can be inconvenient for the customer if they are not available to receive the certified mail. It can result in the unintentional cancellation of an alarm monitoring/servicing contract. This bill provides that if the customer makes payment on an invoice for the renewal/extension of the contract that clearly indicates that such payment of for renewal/extension, the notice provisions of Section 5-903 shall have been deemed to be satisfied.